Union Finance Minister Nirmala Sitharaman has emphasized that health insurance is a key priority for the government, with plans to achieve universal coverage by 2033. Speaking in the Rajya Sabha during question hours, she outlined a major rural outreach initiative that aims to extend health insurance to 25,000 gram panchayats across India.
The minister highlighted that multiple policy measures are being implemented to expand access, particularly in rural areas. In 2024, the Insurance Regulatory and Development Authority of India (IRDAI) issued rules designating the gram panchayat as the basic unit for assessing insurance coverage and rural obligations.
Pointing to India’s comparatively low insurance penetration, Mrs. Sitharaman noted that the country’s per capita insurance premium, including health insurance, is just $97, far below the global average of $943. She added that the health insurance sector is growing rapidly, with total premiums reaching ₹1,17,505 crore in 2024–25 and coverage extending to 58 crore lives under various schemes.
Both public and private insurers, as well as government-backed companies, are contributing to this expansion, with a focus on keeping premiums affordable for low-income and vulnerable populations.
The minister also highlighted social security schemes such as the Pradhan Mantri Jeevan Jyoti Bima Yojana, which provides life insurance coverage of ₹2 lakh for an annual premium of ₹436, making it accessible to low-income households. The scheme has recorded 26.79 crore cumulative enrolments, reflecting the government’s efforts to broaden financial and social protection across the country.
